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Quest Files Last of Results Delayed by Options Probe

Aliso Viejo’s Quest Software Inc. now is up to date on financial results for 2007 that were delayed by a long-running probe into misdated stock options.

The maker of business software said it filed results for the first three quarters of 2007. Fourth-quarter results are expected in coming weeks.

Analysts have taken note.

“Quest released its delinquent quarterly results which assuaged many of our concerns about downside risk,” said Richard Sherman, analyst with Greenwich, Conn.-based MTM Partners.

He upped his price target to $19 a share from $16. The stock was trading at around $18 on Wednesday.

The move marks the end of a more than a yearlong ordeal for Quest, which had a recent market value of nearly $2 billion.

In May 2006, the company formed an internal board committee to review stock options grants from June 1998 and December 2005.

Quest, which makes software that works with widely used business programs by Microsoft Corp., Oracle Corp. and others, gave Wall Street only partial quarterly results for much of the past year or so while it sorted through its internal audit of options.

The year-long hiatus in reporting raised concern among investors and landed Quest many threats to be delisted from Nasdaq.

Last month the company said it took charges of about $137 million for restating the cost of option grants and filed delayed results for 2006.

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